Shares of this smallcap company surged 4 percent in Thursday’s trading session after reporting an increase in net profits by 41 percent YoY. The shares have delivered a multibagger return of 147 percent to its shareholders in one year.
With a market capitalization of Rs. 1,269 crores, the shares of Automobile Corporation Of Goa Ltd started Thursday’s trading session on a higher note at Rs. 2,100 compared to its previous close of Rs. 2,023. During the trading session, the shares hit a high of Rs. 2,123, gaining around 4 percent and are currently trading at Rs. 2,070 apiece.
Such a positive movement in the share price was observed after the company announced quarterly and financial year ended 31st March 2024 results. Quarterly, the revenue zoomed by 24 percent from Rs. 136.31 crores during the December quarter to Rs. 168.43 crores in the March quarter. In addition, the net profits increased by 12 percent from Rs. 9.78 crores to Rs. 10.91 crores during the same period.
Comparing these metrics on a YoY basis, the revenue surged by 25 percent from Rs. 135.09 crores during Q4FY23 to Rs. 168.43 crores during Q4FY24. On the other hand, the net profits magnified by 41 percent from Rs. 7.72 crores to Rs. 10.91 crores during the same timeframe.
Additionally, the Board of Directors have recommended a final dividend of Rs. 15 per equity share (i.e.150 percent) of the face value of Rs.10 each, for the financial year ended March 31, 2024.
As per the annual report, In FY 2022-23, the company sold a total of 5,715 bus bodies, of which 25 percent were dedicated to the export market.
Furthermore, with the rising adoption of electric buses in State Transport Undertakings the Tata Group company is consequently enhancing its manufacturing facility and engineering expertise to accommodate the production of forthcoming bus models, particularly electric buses.
Due to increasing operating revenue and profits on a YoY basis, the profitability metrics of the company improved with the return on equity (RoE) increasing from 5.59 percent during FY 21-22 to 15.36 percent in FY 22-23, and, the return on capital employed (RoCE) zoomed from 4.58 percent to 15.09 percent during the same timeframe. Furthermore, the net profit margin increased from 3.33 percent during FY21-22 to 5.50 percent during FY22-23.
Looking at the latest shareholding pattern, the Promoters, namely Tata Motors and Tata Motors Finance, collectively possess 49.77 percent of the stake. Foreign Institutional Investors (FIIs) hold a mere 0.01 percent of the shares, while the Public holds the majority stake at 50.21 percent.
Incorporated in 1980, Automobile Corporation Of Goa Ltd specializes in manufacturing sheet metal components, assemblies, and bus bodies for various applications. It was the first major engineering unit to be set up in Goa and was jointly promoted by Tata Motors Ltd and EDC Ltd.
Written By Vaibhav Patil
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